Beau borrows $15,000 from Credit Center to buy a car. The lender assigns the right to receive the loan payments to Debt Collections Inc. If Beau does not pay the debt, the assignee can

A) extinguish the contract rights of the assignor.
B) demand performance of the deal from any of the original parties.
C) enforce the payment in court.
D) none of the choices.

Indemnification means that an insurance company can 'step into the shoes' of the insured and sue any party whom the insured could have sued.

Jay Sorensen,who invented the Java Jacket,earned profits as

A) a risk taker.
B) an innovator.
C) both a risk taker and an innovator.
D) neither a risk taker nor an innovator.

Suppose a company issued 30-year bonds 4 years ago,when the yield curve was inverted.Since then,long-term rates (10 years or longer) have remained constant,but the yield curve has resumed its normal upward slope.Under such conditions,a bond refunding would almost certainly be profitable.

The theory of rational expectations concludes that

A) the public's expectations can influence the outcome of monetary policy,but not of fiscal policy.
B) the public's expectations can influence the outcome of fiscal policy,but not of monetary policy.
C) the public's expectations as to the effects of economic policies will tend to reinforce the effectiveness of those policies.
D) by reacting in its self-interest to the expected effects of stabilization policy,the public will tend to negate the impact of those policies.

Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a

A) debit to Accounts Payable
B) debit to Inventory
C) credit to Inventory
D) credit to Sales